Stock Terms: What Is The Growth Enterprise Market?

　　 Growth enterprise market Different countries call different names. In some countries, it is called the second board market, and some are called the second trading system, the growth enterprise market and so on. It refers to another stock market outside the main board market, and its main purpose is to provide fund-raising channels for emerging companies to help them develop and expand their businesses. Most companies listed on the growth enterprise market are highly engaged. science and technology Business has high growth, but it often has a shorter time and a smaller scale.

The US NASDAQ is a typical example of the growth enterprise market. It is known as the cradle of high-tech enterprises, and has cultivated a large number of high-tech giants in the United States, such as Microsoft, Intel, apple, CISCO and so on. It has played a very important role in the development of high-tech industries represented by computer information in the United States and the sustained economic growth in the United States in the past few years. Under the huge demonstration role of NASDAQ, the world's major capital markets have begun to set up their own growth enterprise market. In June 1995, the London Stock Exchange established the GEM market -- the alternative investment market; in February 14, 1996, France set up a new market; in November 1999, the Hongkong gem was formally established.

Judging from the overseas situation, the main difference between the growth enterprise market and the main board market is: no minimum profit provisions are set up so that the high growth companies can not be listed because of low profits, raise the minimum public shareholding requirements to ensure that the company has sufficient capital turnover, set the minimum shareholding of major shareholders and limit the sale of shares, such as the sale of shares under the name of two years, so as to enable the management of the company to maintain its commitment to shareholders in the development of business. In addition, the gem uses bulletin boards as a way of trading, and no matter where the company is registered, it can be listed as long as it meets the requirements.

Some investors worry that the establishment of the growth enterprise market will lead to a diversion of funds to the main board market. Theoretically, if the investment varieties in the stock market can not break through in breadth and depth, the further development of the securities market will stagnate. Therefore, we only see the expansion of the market, we can not see that it has injected new concepts and themes into the market. It is a short-sighted behavior. In fact, the investment target and risk bearing capacity of the growth enterprise market and the main board market are different. Under normal circumstances, the two party will not interact with each other.